Indian equity indices opened Wednesday’s trading session on a lower note. The NSE Nifty 50 opened 0.13% lower at 24,948. The BSE Sensex opened 105 points lower at 81,539.
Similarly, Bank Nifty opened 140 points or 0.25% lower at 55,724. In line with the benchmarks, the small and midcap stocks opened the day on a muted note. The Nifty Midcap fell 8 points to 57,657.
“The three-day 364-point rally in the Nifty came in response to the unexpected announcements relating to GST reforms, which are likely to happen before Diwali. The market has been responding to the potential demand boost to sectors like automobiles, FMCG, insurance and select financials, which are expected to benefit from the GST rationalisation,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
“Improvement in India-China relations has also contributed to the rally. However, there is no scope for a sustained rally since the August 27th deadline for the 25% secondary tariff on India is fast approaching, and the news coming from the Trump administration is not positive,” added Vijayakumar.
For day traders, as long as the market trades above 24,850, the uptrend wave is likely to continue higher, possibly extending towards 25,150-25,250 above 25,050, said Shrikant Chouhan, Head of Equity Research at Kotak Securities. On the other hand, below 24,850, the uptrend may weaken and fall to 24,750-24,650 levels, where it has the next leg of big support.
Let’s take a look at the key factors to watch out for today’s trading session
Early gainers and laggards
In early trade, among the Nifty 50, top gainers at this hour were Bharti Airtel, NTPC, Zomato (Eternal), HDFC Life Insurance, and Infosys. On the flip side, the key laggards in the Nifty 50 pack included Shriram Finance, Bajaj Finance, Jio Financial Services, Tata Motors, and HCL Technologies.
Global markets
Asian markets opened weak on Wednesday, with major indices across the region slipping into the red. US markets ended mixed. The S&P 500 slipped 0.59% to close at 6,411.37, while the tech-heavy Nasdaq Composite tumbled 1.46% to 21,314.95. In contrast, the Dow Jones Industrial Average inched up 10.45 points, or 0.02%, to finish at 44,922.27, even hitting a fresh record high during the session.